The leading edtech company BYJU's continues to struggle amidst a financial crisis. It has been trying to improve its conditions but to no avail. Once celebrated as the nation's most valuable startup and a rapidly achieved unicorn status, BYJU's is now scrounging for funds.
In a bid to save funds, the company has had to close all its regional offices (BYJU Shut Office), and has now begun the process of shutting down its tuition centers (BYJU Tuition Center), closing 30 centers to cut costs. The company states that 262 will transition to a hybrid model, with the goal of most centers becoming profitable within three years.
Centers to operate on a Hybrid Model
BYJU'S stated that they are incredibly proud of their teachers' dedication and their students' performance. The focus on efficiency and quality has helped many of its centers turn a profit. The company added that 90 percent of its tuition centers will operate on a new technology-based hybrid model within the next year.
Regional Offices were already closed
To reduce expenses, the company had already shut down all its regional offices, affecting approximately 15,000 employees who were then offered to work from home indefinitely. BYJU's retains only one corporate office located in the Knowledge Park at IBC Headquarters in Bangalore. It's worth noting that BYJU's had established over 20 regional offices in cities like Delhi, Gurgaon, Mumbai, Pune, Hyderabad, Chennai, and others.
Notably, BYJU's is facing a severe financial shortage and has been unable to pay employee salaries on time. The company's founder and CEO even resorted to mortgage personal property to meet salary commitments.
